Broken Chandeliers and Oven Fires: What Happens When a Real-Estate Pro Damages a Listing? - Kanebridge News
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Broken Chandeliers and Oven Fires: What Happens When a Real-Estate Pro Damages a Listing?

It was a total accident, and their worst nightmare

By ROBYN A. FRIEDMAN
Fri, May 17, 2024 9:34amGrey Clock 4 min

Have you ever accidentally damaged a client’s home?

Debby Belt, senior associate, Hammond Residential Real Estate, Chestnut Hill, Mass.

I was representing the seller of a four-bedroom Cape Cod-style home in Newton, Mass., just west of Boston. It was May 2016 and the house was listed for $929,000. It had a beautiful kitchen, with wood cabinets, granite countertops and stainless-steel appliances.

The house went under contract, and it was scheduled for a home inspection. I wanted the house to look pristine for the inspector and buyers, but the kitchen counters were cluttered, so I frantically threw things into drawers, and I put some glassware, baking tins and plates into the oven. When the inspector walked into the kitchen, he turned on the oven to test it without looking inside first. I was in another room at the time, but I smelled something burning, and then heard explosions as the glass shattered.

When I ran into the kitchen, I saw smoke and a small fire in the oven. There was broken glass all over the place, and the kitchen was smoky. Since it was a gas oven, it could have been much worse. The oven was damaged, and the seller wasn’t happy, so I gave her a $500 discount on the commission to offset any damage or credits she would have to give to the buyers. The buyers weren’t too upset, fortunately, because they were probably planning to update the appliances. The home ended up selling for $920,000 with the oven not functioning perfectly. Now, when I meet the inspector, we both still laugh about it.

Jeffrey Kahn, broker, Broker Associates Realty, The Villages, Fla.

In 1995, early in my real-estate career, I was representing the seller of a condominium in a luxury high-rise building on the ocean in Lauderdale-by-the-Sea, just north of Fort Lauderdale. My seller had the mistaken impression that the dining room chandelier was excluded from the sale, so she had it taken down just before closing and replaced it with a less-expensive fixture.

When we did the walk-through the day before closing, the buyer noticed that the original chandelier, which was about 3 feet wide and custom-made from oyster shells and glass on a wrought-iron frame, was missing and, since the contract said that the unit was being sold furnished with everything included in the sale we needed to rectify the situation. The buyer was refusing to close because she loved the chandelier, and my commission—about $30,000, which I was going to split with the other agent—was in jeopardy. The original chandelier was packed in a box on the dining room table, and to make the deal happen, I told the seller I would replace her chandelier with a comparable one if we would rehang the original.

It wasn’t a difficult chandelier, and I’ve done a lot of electrical work in my own homes, so I took down the one hanging from the ceiling. As I started to remove the oyster-glass chandelier from the box, a hairless Sphynx cat jumped on the glass dining room table and rubbed against me. I had never seen a cat in the apartment during the entire listing process, so it scared the heck out of me. I dropped the chandelier, which broke, and I ended up having to pay $8,000 for two new chandeliers and electrician fees. Thankfully, the unit sold for $978,000 and my commission was sufficient to cover the costs. I was just happy the glass dining-room table didn’t break because then my whole commission would have been gone.

Joshua Garner, real-estate agent, The Agency, New York City

In October 2022, I was representing the owner of a Classic Seven co-op on the Upper East Side that was listed for $3.1 million. It had three bedrooms and 2,575 square feet of classic prewar details, with 13 windows and high ceilings. It also had the most particular seller ever. She trusted no one but myself to open up and show the apartment, and it took no less than 30 minutes to prepare and close up each time. There was a written checklist I had to follow, in a specific order, that included the proper angle at which to pull the string for the blinds, how to pick up and strategically fold, stack and put away the series of white sheets she had laid out as runners to protect the bedroom carpets and wearing shoe covers and gloves. She would watch everything from Switzerland via her security cameras and would call me to correct the smallest details.

Prospective buyers were told not to touch anything and to stay on designated walking areas, which were placed a distance from the Ming vases. If they wanted to see the interior of a cupboard or closet, I would refer to myself as Vanna White and would respond to what they instructed. I always warned them ahead of time that she was probably watching and that anything they said or did would be recorded. Buyers would enter with their guard up, which made it difficult. One day, after a showing, I couldn’t get one of the blinds to lower properly. I panicked, but I notified her immediately, and she had a maintenance worker inspect it. The cord had come off the internal spool, and even though it was a quick fix, the seller was livid and ready to withdraw the exclusive.

The only thing that saved the listing was offering to pay $300 to fully replace the mechanism to restore it to new condition. Although there were incidents that upset her during other showings, thankfully, nothing else was ever broken. This co-op, which ended up closing for $2.95 million in October 2023, was the most high-stakes deal I ever worked on.

—Edited from interviews by Robyn A. Friedman 



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Manhattan’s office-vacancy rate climbed to more than 15% this year, a record high. About 80 miles away in Philadelphia, occupancy also is at historically low levels. But a 24-storey office tower located between the two cities has more than doubled its occupancy over the past five years.

Developer American Equity Partners bought the New Jersey office tower, known as 1 Tower Center, for $38 million in 2019. At the time, the 40-year-old building felt dated. It had no gym, tenant lounge or car-charging stations.  The low price enabled the firm to spend more than $20 million overhauling and luring tenants to the 435,000-square-foot property.

Now, the suburban building is nearly fully leased at competitive rents, mopping up tenants from other buildings after the owner added a new lobby, movie theatre, golf simulator, fitness centre and a tenant lounge featuring arcade games and ping-pong tables.

“Our tenants told us what they needed in order to fill up their offices,” said David Elkouby , a co-founder of American Equity, which owns about 4 million square feet of New Jersey office space.

The new owner also liked the location at the 14-acre hotel and conference-centre complex, off the New Jersey Turnpike’s Exit 9 in East Brunswick. The site is a relatively short commute for millions of workers in central New Jersey and is passed by 160,000 vehicles daily.

The property’s turnaround shows how office buildings can thrive even during dismal times for most of the U.S. office market, where vacancies remain much higher than pre pandemic.

Success often requires an ideal location—one that shortens the commute time of employees used to working at home—and the sort of upgrades and amenities companies say are necessary to lure employees back to the workspace.

One Vanderbilt, a deluxe office tower with a Michelin-star chef’s restaurant and plenty of outdoor space in Midtown Manhattan, is fully leased while charging some of the highest rents in the country.

The 11-story Entrada office building, in Culver City, Calif., is making the same formula work on the other coast. It opened two years ago with a sky deck, concierge services and recessed balconies. A restaurant is in the works. The owner said this month that it has signed three of the largest leases in the Los Angeles area this year.

1 Tower Center shows how the strategy can be effective even in less glamorous suburban locations. The tower is prospering while neighbouring buildings that are harder to reach with outdated facilities and poor food options struggle to fill desks even at reduced rents.

The recent interest-rate cut and reports that some big companies such as Amazon .com are re-instituting a five-day office workweek have raised hopes that the office market might be getting closer to turning.

But with more than 900 million square feet of vacant space nationwide and remote work still weighing on office demand, more creditors are seizing properties that are in default on debt payments.

Rates are still much higher than they were when tens of billions of dollars of office loans were made, and much of that debt is now maturing. The recent interest-rate cut doesn’t mean “office-sector woes are now over,” said Ermengarde Jabir, director of economic research for Moody’s commercial real-estate division.

Lenders are dumping distressed properties at steep discounts to what the buildings were worth before the pandemic. Some buyers are trying to compete simply by cutting their rents.

“Most owners don’t have the wherewithal to do what is required,” said Jamie Drummond, the Newmark senior managing director who is 1 Tower Center’s leasing agent. “Owners positioned to highly amenitise their buildings are the ones who are successful.”

HCLTech, a global technology company, illustrates the appeal. It greatly expanded its presence in New Jersey by moving this year to a 40,000-square-foot space designed for its East Coast headquarters at 1 Tower Center.

The India-based company said it was drawn to the building’s amenities and design. That made possible a variety of workspaces for employees, from quiet nooks to an artificial-intelligence lab. “You can’t just open an office and expect [employees] to be there,” said Meenakshi Benjwal , HCLTech’s head of Americas marketing.

HCLTech also liked the location near the homes of its employees and clients in the pharmaceutical, financial-services and other businesses.

Finally, it didn’t hurt that the building is a short drive from nearby MetLife Stadium. The company has a 75-person suite on the 50 yard line where it entertains clients at concerts and National Football League games.

“All of our clients love to fly from distant locations to experience the suite and stadium,” Benjwal said.